IMF approves $506m loan tranche for Pakistan

Washington (APP) – The International Monetary Fund (IMF) has approved release of about 506 million dollars for Pakistan as part of three-year loan programme supported by an Extended Fund Facility (EFF).

 

In a statement issued in Washington, IMF said the tranche was released after the board completed the seventh review of Pakistan's economic performance under EFF.

 

With the release of the latest tranche, the total amount so far disbursed to Pakistan comes to about 4.05 billion dollars. This will take the country's foreign exchange reserves to 18.7 billion dollars.

IMF Acting Chair Mitsuhiro Furusawa said progress toward macroeconomic stabilization in Pakistan is encouraging.

 

He said the planned fiscal adjustment in the context of the fiscal year 2015-16 budget is appropriate.

 

The authorities' plans to broaden the tax base, including eliminating tax exemptions and concessions, are welcome, though significant scope remains for increasing tax compliance and enforcement.

 

IMF noted that foreign exchange reserves have continued to increase and monetary policy has remained appropriate under current macroeconomic conditions.